personal service.
Examples: baby changing facilities, no quibble money back guarantee, "one
in front" queuing policy.
Store design
Objective: to provide an environment that is easy and pleasant to shop in.
Example: store layouts, fixtures and ambience improved to ease customer
flow and make shopping more enjoyable.
Store refurbishment
Objective: to upgrade existing stores to the standard that is expected from
Tesco.
Example: existing stores improved to include recent innovations.
Communications
Objective: advertising should appeal to all social and economic groups in a
relevant and friendly way. Example: recent television ads.
C2
How the organisational structure, culture and management style of the
business affects its performance and operation and helps it to meet its
objectives?
I have analysed each of the major functions of Tesco separately. However,
it is the effective interaction of business functions that is essential to
the success of an organisation in attaining its objectives.
Marketing
Advertising.
Tesco uses advertising in the press, on the radio as well as on television
to support the company’s marketing by making the public aware of the
products and services available in its stores.
The Tesco logo.
The Tesco logo is a vital part of its image. By 1995 many versions of the
logo had evolved and company’s corporate identity was not focused. Company
therefore began to use one single Tesco logo that is the same everywhere,
on stores, letterheads, posters, lorries....
The new logo has the company name in red, the underlining in blue and the
background white. However, given the cost of this change Tesco did not
immediately change every logo for the sake of it, but gradually as old
items were replaced, repaired, repainted, reprinted or re-designed. This
means that it is taking about three years for the new logo to completely
supersede all other versions.
Chef’s Club.
The Chefs' Club is an initiative which brings the best advice on food and
drink to customers and aims to make shopping more enjoyable. Tesco is
working with some of the country's top chefs and other experts who want to
share their passion for good food and drink with customers.
Tesco Packaging Design.
Tesco has many "Own Brand" products, and in order to promote its own brand
correctly Tesco has its own Packaging Design Department. Products sell for
a variety of reasons; in the first instance, the visual appeal of a product
is important to attract customers to the product initially, as it is only
after the first purchase that the customer is attracted because of the
quality of the product and its value for money.
Tesco Product Promotion.
Product promotion is the responsibility of the Tesco public relations
team. The team is always involved at the planning stage of any new product
or service, and its brief is to generate extensive and appropriate coverage
for the new product.Tesco has three key objectives for any product
promotion; these are:
. to reinforce the Tesco brand values of quality, choice, price and
service
. to maintain the Tesco image as a market leader through its products
and services
. to manage product issues - both positive and negative.
Distribution
Purpose of the distribution department
Its purpose is to ensure that Tesco stores have the right products
delivered against agreed delivery schedules and in good condition, enabling
the stores to provide a consistently high level of customer service.
Tesco products are sent to stores from distribution centres around the
country. Tesco runs 13 centres and a further six centres are run for Tesco
by contractors. A typical centre covers 300,000 square feet and handles
some 50 million units a year. The centres work around the clock, seven days
a week, providing 2,500 deliveries daily, amounting to 19 million cases per
week. Tesco employs 6,800 people in distribution (excluding the staff at
the contractor-run centres), and has about 1,000 tractor units and 2,000
trailers in its national vehicle fleet.
How does Tesco keep each store supplied with what it needs?
The key to the distribution system’s ability to supply each store’s needs
are the advanced use of IT at all stages of the distribution system.
Information from stores about their sales and requirements is sent to Tesco
Head Office and from there to the distribution centres. The centres run a
computer system that has been specially designed to fit with Tesco working
practices and to maximise efficiency).
How does Tesco achieve maximum efficiency in its distribution centres?
Computerised information arrives via printers in the warehouse offices. The
system feeds this information directly to the staff on the warehouse floor
via radio links mounted on the fork-lift trucks. The system helps to
control the movement of stock and the activity of staff. Thus when a person
has finished a particular job, the computer decides which would be the most
efficient job to allocate next to that person, based on his or her current
position in the warehouse.
Also, in the past, Tesco’s operations have been slowed down at peak times
by the need for product identification and purchase-order matching. Now
each goods-in checker is equipped with a scan gun which can scan the outer
case code of each product and radio the information back to the Head Office
computer, which matches a delivery with its purchase order in an instant.
As well as easing bottlenecks, this system enforces accurate outer case
coding, which Tesco believes to be essential to future developments in its
distribution system.
Human Resources
People are fundamental to business and the way company recruit, develop
and reward people is the key to success. Human Resourcing in Tesco is
therefore influential, leading edge and proactive to ensure continued
success.
Human Resources at Tesco is divided into a number of central areas which
focus on the design and research of Tesco HR policies and a number of front
line HR professionals that work in partnership with company’s Line Managers
to deliver the business plan.
Promote management development
Tesco does this by providing opportunities for everyone to increase their
learning, thus enabling Tesco to thrive in a constantly changing and
competitive market place. Tesco does this by:
designing training packages which equip people with the knowledge, skills
and experience needed to reach high standards of performance, and equipping
trainers to coach others thus maintaining excellent quality standards.
enabling training to be delivered in the workplace by people who know how
to do the job themselves.
exploiting new methods of learning, and thereby providing a supply of
general business managers for the future.
developing effective working relationships with colleagues and suppliers
through listening and challenging, and designing products which inspire
them.
Research and development of effective corporate human resource policies
Tesco does this by:
being constantly aware of UK and European employment legislation, and
translating it into policy that maintains a balance between cost
effectiveness, fairness, developing relationships with people, and
company’s business aims.
researching and developing people involvement strategies; this involves
analysing staff research, which includes both large-scale corporate surveys
and specialist staff research.
providing updates on employment law.
scanning and benchmarking other organisations, in order to import best
practice and maintain a competitive stance.
ensuring specific policies, for example regarding the employment of
disabled people and equal opportunities.
achieving external recognition, to ensure that Tesco is seen as a quality
employer.
Developing selection standards and implement corporate entry programmes
Two crucial roles for the Human Resources Department are:
developing selection standards which will enable managers to select the
best people who will continually increase value for customers.
implementing corporate programmes in order to ensure that the company's
manpower requirements are met.
Tesco does this by:
designing recruitment and selection processes which will equip managers
with the skill and knowledge to select the best.
training managers to maintain selection standards, and to select using the
most reliable and leading-edge processes.
developing corporate competency frameworks which enable managers to select
the right people, who have the skills the business will need in the future.
developing corporate entry programmes to ensure that corporate manpower
needs are met in terms of skills and numbers.
developing and implementing Tesco employment branding and marketing
strategy in order to ensure that Tesco is seen as a quality employer which
attracts the highest calibre candidates.
developing a pool of Excel graduates providing a supply of managers with
broad business experience.
developing at a national level links with leading education/industry
establishments, and planning initiatives whereby managers can develop links
with education at a local level.
Reward Development
Reward Development researches and develops rewards and organisational
design strategy which enable Tesco to recruit, motivate and retain the
best. Tesco does this by:
sourcing and analysing pay and benefits data to enable Tesco to keep
remuneration and benefits packages competitive.
continually shaping innovative ways of rewarding staff, thereby enhancing
the value of the reward package and increasing staff retention and
stakeholding.
developing performance management processes and tools which will improve
performance and encourage motivation in staff
providing advice and if necessary challenging organisational design,
thereby ensuring a maximum return on corporate reward spend and creating
organisational structures which will deliver business goals.
HR professionals
HR professionals operate out of the Line, working as part of the senior
management team in order to influence and implement HR strategy. They work
closely with the central HR departments and line managers to deliver key
aspects of company’s business plan:
Develop the best
Recruit the best
Retain loyal and committed people
Live the values of the company
Transfer HR skills effectively to the line.
Hence these functions help meet the objectives successfully. All Tesco’s
organisation structure works as links of a chain, if one link falls down,
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